While it is dangerous to over-interpret this year’s newcomers listing, it does indicate some significant changes. After providing six newcomers last year, China provided seven new banks in the latest listing, headed by Beijing Rural Commercial Bank in 458th place in the Top 1000. This brings China’s total in the ranking up from 25 to 31 banks in 2007, and shows its steady improvement.
In sharp contrast, the previous dominance of the US and Germany in providing new blood has declined considerably. The US, which claimed 10, 11 and 13 new banks in the 2004, 2005 and 2006 rankings, respectively, claims just four in the latest Top 1000. The total number of US banks in the latest ranking has also dipped sharply to 202 from 215 last year.
From having 12 new entrants in 2005, Germany has just three this year. The number of German banks in the Top 1000 has also slumped from 96 last year to 88 this year. This may be seen as a cyclical blip but it could also be seen as a sign of a shift in global banking structure.
Looking at the new arrivals, two new Gulf banks that were ‘born big’ managed to make it into the top half of the Top 1000. Bahrain’s Awal Bank, a wholesale bank licensed in late 2004, had attracted $1065m in Tier 1 capital by end 2006 and rocketed into the ranking in 401st place. Similarly, Saudi Arabia’s Bank Albilad was established in late 2004, aspiring to be a universal bank across the kingdom. With capital of $807m at end 2006, it was ranked 481st. Both Awal Bank and Bank Albilad are young but, although they are strongly capitalised, they have relatively small asset bases at present.
Besides China’s seven, the Middle East accounts for eight of the newcomers, with banks coming from seven countries in the region.
Greek Postal Savings Bank rejoins the Top 1000 ranking in 456th place.
The smaller total of 46 new arrivals this year come from a varied total of 28 countries.
With the global trend of increased consolidation across all markets, the expectation is for more new entrants to the Top 1000. But this has not happened in the latest ranking: a small number of newcomers come from a more diverse group of countries. The capital entry level for the Top 1000 continues to rise as expected, but the increases are steady. The 1000th bank this year had a capital of $231m, compared with $216m last year and $200m the year before that.NEW ARRIVALS IN THE TOP 1000
